The Dividend Cafe - The Dividend Cafe Thursday - October 10, 2024

Episode Date: October 10, 2024

Market Update and Economic Insights - October 10th In this episode of Dividend Cafe, recorded on October 10th, host Brian Szytel discusses the day's quiet market activity, with slight decreases in both the Dow and S&P indices and an unchanged bond market. The CPI report showed a slight increase in inflation, driven primarily by shelter and food costs. Initial jobless claims were higher than expected, partly due to a Boeing strike and Hurricane Helene. The episode also features a Q&A about the potential deflationary environment and its challenges. Listeners are encouraged to reach out with questions. 00:00 Introduction and Market Overview 00:27 Inflation Data Insights 00:53 Jobless Claims and Economic Impact 01:28 Q&A on Inflation and Deflation 01:49 Conclusion and Final Thoughts Links mentioned in this episode: DividendCafe.com TheBahnsenGroup.com

Welcome to the Dividend Cafe, weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life. Welcome to Dividend Cafe. This is Thursday, October 10th. Brian Seitel with you here today on a fairly quiet market day in the market. The market was actually lower slightly by about 0.15% or so on the Dow, a little bit more on the S&P. So fairly quiet day, just slightly to the negative. Bond market was literally unchanged on the 10-year. So some flat yields across the board today. The numbers we got actually could have moved markets more. We got an inflation read with CPI coming out at 0.2% for the month, the estimate was for 0.1. So it was just a little bit more than expected. And then on core, if you strip out food and energy, it was a 0.3 versus a 0.2.

That was consensus. So just slightly higher. Inside of those numbers, it was really shelter and food that contributed 75% of the increase. So I think markets took it pretty much in line for what they were. We also had initial jobless claims on the day at 258, which was far more than we thought that it would be. We were estimating somewhere around 230. And so quite a bit more people filing for unemployment. Part of that, though, there was a strike at Boeing that probably affected some of those numbers.

And then we also had, of course, Hurricane Helene that likely added to some of those numbers. And then we also had, of course, Hurricane Helene that likely added to some of those numbers as well. But nonetheless, that 250 apron would be the highest since October of 2023. So some higher numbers on the employment side. But overall, a fairly in-line day with markets. And there was a Q&A in there about inflation subsiding and then ultimately prices going back to where they were, some sort of a deflationary environment. And David did a nice job of explaining why deflation is a whole other issue to deal with and often even worse, where prices in the future are lower. And so it just kills economic activity altogether.

But I'll let you read through that. And I'm going to let you go here for the evening. I thank you for listening. As always, reach out with your questions. Thank you very much. The Bonson Group is a group of investment professionals registered with Hightower Securities LLC, member FINRA and SIPC, with Hightower Advisors LLC, a registered investment advisor with the SEC. Securities are offered through Hightower Securities LLC. Advisory services are offered through Hightower Advisors LLC. Advisory services are offered through Hightower Advisors LLC. This is not an offer to buy or sell securities. No investment process is free of risk. There is no guarantee that the investment process or investment opportunities referenced herein will be profitable.

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